McDonald's Logo Reuters

McDonald's Corp said on Monday it would introduce new menus with $1, $2 and $3 items to its U.S. customers in early January.

The new menu includes the debut of a new chicken sandwich as the U.S. fast food giant tries to woo customers from rivals such as Yum Brands Inc's Taco Bell to Dunkin' Brands Group Inc.

McDonald's dropped its popular "Dollar Menu" in 2013 after franchisees groused that selling items like a double cheeseburger for $1 cut into profits.

The new dollar menus, set to debut on Jan. 4, include any size soft drinks and cheeseburgers for $1, small McCafe drinks and bacon McDoubles for $2 and Happy Meals and triple cheeseburgers for $3, McDonald's said.

McDonald's $1 $2 $3 Dollar Menu is the latest in the company's evolving value proposition for budget-minded customers.

The Dollar Menu, which launched in 2002, was popular with customers but less so with franchisees, particularly as food and labor costs rose through the years.

Elsewhere, Taco Bell regularly rotates the roughly 20 items on its $1 value menu. Subway, which made a huge splash a few years ago with its "$5 foot-long" special, is now offering a variety of six-inch sandwiches for $2.99 each.

(With inputs from Reuters)